Thrasio, the US-based company that pioneered the model of acquiring private brands on Amazon and scaling them up, is entering India and is close to making its first acquisition of a local brand.
The world’s largest acquirer of third-party private label businesses on Amazon has held talks with consumer durables brand Lifelong Online for an acquisition, people briefed on the matter said.
Thrasio is expected to pay $30-$50 million for the acquisition.
Tanglin Ventures, an early-stage venture fund backed by Udaan cofounder Sujeet Kumar and Flipkart group CEO Kalyan Krishnamurthy, is expected to exit. Tanglin holds over 20% stake in the startup.
After the acquisition, Thrasio has plans to invest as much as $500 million in India as it has identified the country as one of the largest available consumer markets.
Lifelong Online sells consumer durables in segments like kitchen, grooming, home appliances, fitness, lifestyle and accessories.
According to sources, its monthly peak sales have been in the range of around Rs 40-Rs 50 crore and it is known for its kitchen and home appliances.
Thrasio’s India bet comes at a time when several startups replicating its model here have raised hundreds of millions in funding over the past few months amid increased adoption for direct-to-consumer brands, aided by the broader growth in ecommerce.
The D2C brand space will be a $100 billion market opportunity by 2025, investment banking firm Avendus Capital said in a report.
Categories: Corporate M&A